Thoughts From the Frontline, April 2017

Angst in America, Part 5: The Crisis We Can’t Muddle Through

April 23, 2017

“The ship of democracy, which has weathered all storms, may sink through the mutiny of those on board.”

– Grover Cleveland, the 22nd and 24th president of the United States

“It is your concern when your neighbor’s wall is on fire.”

– Horace

The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment. Typically, high past returns simply imply...

Angst in America, Part 4: Disappearing Pensions

April 16, 2017

“Companies are doing everything they can to get rid of pension plans, and they will succeed.”

– Ben Stein

“Lady Madonna, children at your feet
Wonder how you manage to make ends meet
Who finds the money when you pay the rent?
Did you think that money was heaven sent?”

– “Lady Madonna,” The Beatles

Stock Market Valuations and Hamburgers

April 9, 2017

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying -- – except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

– Warren Buffett, Fortune magazine: “The Wit and Wisdom of Warren Buffett”...

Angst in America, Part 3: Retiring Broke

April 2, 2017

“The trouble with retirement is you never get a day off.”

– Abe Lemons

“Retirement at sixty-five is ridiculous. When I was sixty-five I still had pimples.”

– George Burns

“To be, or not to be, that is the question:
Whether 'tis nobler in the mind to suffer
The slings and arrows of outrageous fortune,
Or to take Arms against a Sea of troubles,
And by opposing end them.”

– Shakespeare, Hamlet